1. Member States shall require institutions and entities referred to in points (b), (c) and (d) of Article 1(1) to include a contractual term by which the creditor or party to the agreement or instrument creating the liability recognises that that liability may be subject to the write down and conversion powers and agrees to be bound by any reduction of the principal or outstanding amount due, conversion or cancellation that is effected by the exercise of those powers by a resolution authority, provided that that liability complies with all of the following conditions:
(c) the liability is governed by the law of a third country;
(d) the liability is issued or entered into after the date on which a Member State applies the provisions adopted in order to transpose this Section.
Resolution authorities may decide that the obligation in the first subparagraph…